California’s Looming Public Pension Crisis

Other state pensions are in a similarly bad shape. The choices for them will be one of the following, or a combination: raise taxes, cut “services”, lower pension payouts, or raise pension contributions.

As far as I know the only one who has actually started confronting public sector unions, teachers, and the like is governor Christie of New Jersey. I doubt he’ll succeed in the long run, but it’s interesting to see someone try.

Of course a good sign that he is taking steps in the right direction is that Paul Krugman, who is of course as always incapable of predicting any government induced crises in time, has nothing better to do but to bitch about governor Christie’s cancellation of a tunnel project.

Yes, this is not a joke. There are state governments passing budgets on one junket after another, making outlandish pension promises, putting future taxpayers on the hook for billions upon billions of dollars, paying public union workers outrageous wages, and Krugan’s really big concern is the cancellation of a tunnel project … he never fails to amaze me! :))

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